France invites Indian cos after it tops EY survey as Europe’s most attractive investment destination
French Envoy to India Emmanuel Lenain said President Emmanuel Macron leads the most pro-business regime in France which has brought labour reforms, reduced corporate tax and provided for a flat tax on capital gains to make it easier to do business in the country.
France is the third favourite destination in Europe for Indian companies to invest in after the UK and Germany. “One of the big assets of France is to be able to reach out to Africa, to the Middle East,” Lenain said at a selected media briefing here on Friday. “We feel France is now a good place to invest.”
“FDI toward France is gaining momentum with the reshuffling of the supply chain industry due to Brexit and China situation,” Lenain said. “Indian investors choose France as their HQ in Europe post-Brexit to benefit from the various incentives offered by the French government’s recovery plan 2030.”
The ‘France Attractiveness Survey’ published by EY on May 31 identifies international businesses in Europe each year and analyses the perception that foreign economic decision-makers have.
According to the latest survey, France is the most attractive country in Europe for the third successive year, with 1,222 investment projects identified in 2021, an increase of 24 per cent compared with 2020.
Eric Fajole, Director of Business France India, also present on the occasion said the country offers lucrative incentives with its strategic location in Europe.
“France’s attractiveness has been blessed for the third year in a row by the international leaders interviewed by EY,” he said.
Indian investment worth 250 mn USD flowed into France in 2021.
As many as 210 Indian companies are operating in France. This includes Mahindra & Mahindra, IT services firm
and agro firm UP. Fajole said France is becoming a hub for batteries and EVs.